Skip to main content

About this Show

Markets Now

News/Business. Business news. New.

NETWORK

DURATION
02:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 130 (Fox Business)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
704

PIXEL HEIGHT
480

TOPIC FREQUENCY

Us 17, America 12, Chicago 10, Apple 10, U.s. 8, Nicole Petallides 7, Romney 7, Humana 6, S&p 6, Hollywood 5, Motorola 4, United States 4, Brian Hamilton 4, Ian Vasquez 4, Europe 4, Afghanistan 4, Washington 4, China 4, Nicole 4, Intel 3,
Borrow a DVD
of this show
  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    September 18, 2012
    1:00 - 3:00pm EDT  

1:00pm
melissa: apple and the dow, people wanting to modernize. here you go. the dow basically flat. that is encouraging. 1:00 on the east coast. i am lori rothman. melissa: oil continued its climb one day after dropping $3. the you see that dropped night? [talking over each other] lori: i was out yesterday. melissa: we want to know what happened and what pressured crude oil -- lower today. lori: fedex warning signals are out. this bellwether stock issuing a bleak outlook at the health of the global economy but could the shipper had a few tricks up its sleeve or not? next month investor meeting, and a big surprise. [talking over each other] melissa: mitt romney's 47% political economic reality and
1:01pm
lou dobbs's take on that straight ahead. that has some fraction. melissa: lori: let's head to the stock exchange and nicole petallides. stocks hitting their earlier losses. nicole: back in the green for the dow jones industrial average up four points after yesterday's loss of 40 points. some traders talking about holidays and lighter volume and discounting the fact that yesterday we sold off and upwards trend for the major averages so we do see the s&p and nasdaq going back a little bit. one thing that helped things along was homebuilder sentiment index. nice numbers and the six year high highest in september and rose the fifth straight month in a row. apple good news for apple shareholders, 70144 all time new high for apple over the i phone 5 which has been selling out,
1:02pm
record sales for the i phone 5 when you walk into the store sept. 20 first. that is one we will continue to watch through the end of the week into next. lori: apple not charging ahead. won't get more later this hour. melissa: interesting connection. oil on transport's second straight down day on the heels of yesterday's wild session. phil flynn of price futures group in the pits of the cme. our traders still reeling from that? that was not the. phil: i think they are. may have changed the momentum of this market. going into yesterday, focusing on what was bullish and all of a sudden a lot of talk about what is bearish and even though a lot of people think yesterday's of what might have been a fluke based on what we are seeing today those flukes can have a deeper meaning. melissa: there were fundamental reasons why you would see a sell-off in the complex going down at once which makes you
1:03pm
think it wasn't the so-called bad thing or trade or a mistake but something real behind it. go to the fundamentals that might be breaking down. phil: let's take europe for example. concerns about europe, whether spain gets a bailout or not to have a huge impact on oil demand. everytime there is turmoil in europe is bearish for the euro but also bearish for oil. the other thing traders are looking at is this conflict between china and japan over these islands. this dispute between big trade partners between some of the biggest economies in asia if it leads to a trade war very bearish for oil. that is another issue. melissa: all the tension in the middle east france where a lot of our oil supply comes from. why is that not giving the oil market more support? >> we have been preparing for that eventuality for the last year and a half.
1:04pm
i believe people have to realize ever since the iranian stormed the british embassy and europe decided to put an embargo on iranian oil the world has been preparing for a disruption of supply and building inventory for the last year and a half so we have a very good question. the other thing about iran is the market is a way for an actual disruption of supply before it propels us higher. melissa: phil flynn with your finger on the pulse. we appreciate your insight. phil: thanks. lori: fedex shares falling and the company's latest earnings results. the bellwether cut its full-year outlook sending a warning signal to the health of the global economy. my next guest was in front of the all. he downgraded shares of fedex weeks before the company went ahead and cut its first quarter guidance. joining me over the telephone is donald swann, senior transportation analyst. thanks for joining us on the
1:05pm
phone. was this earnings report what you expected or worse? >> it was what we expected from what they earned in the current period. what was worse was the outlook and that is understandable given the most profitable thing fedex does is express box across the pacific or the atlantic ocean and what they call international priority express' and if you track worldwide volume is the way we do you see deceleration in always. the euro asia lane and trans-pacific and trans-atlantic and the deceleration is why we downgraded the group and both shares of fedex and ups. webmac as melissa was saying fedex is a harbinger of the overall global economy so does this suggest the u.s. will languish or get worse? >> it suggests it will get worse
1:06pm
and that coincides with container flow and ocean container volume start to contract and you are seeing u.s. truck tonnage get weaker and freight flow has a well earned reputation for predicting the economy and just about every segment we are seeing reasons to if not see yellow flashing lights to see red flashing lights. melissa: if you look at shares of appleby iphone 5 announcement charging shares of $700 a pop but manufacturing we are hearing from fedex continues to be weak so why are new products from apple and microsoft not offsetting the weakness? >> great question. what has happened is this. everyone is saying i want i phone 5 and i will sign up now allows apple to become more savvy in how they manage their supply chain. not all of those will travel in
1:07pm
a fedex jet. many will be handled by the networks and they will be moved on ocean container. it allows them to deliver all those iphones at a much lower cost of transportation because they can preplanned given everyone willing to commit. lori: simple explanation. so there is this investor meeting early next month. the c e o fred smith said quoting investors will be surprised by magnitude of the cost cuts. we refuse to call the draconian and they will not have layoffs. >> expectation is fedex will do a great job presenting its story. they are a brand company. fedex is one of the few companies like coca-cola and kleenex that are synonymous with the service they provide and always do a great job in their hometown of memphis but other thing you have to be careful of is understand their brand is
1:08pm
built on service, delivering great service. the reason we can't be too draconian is they would hate to cut back too far and hurt a brand they have built over the last 40 years. lori: thank you for your analysis. we will see where they go from here. mal melissa: militants claiming responsibility for suicide attacker claimed the lives of a dozen people and wounding 15 others. colin powell joins us from afghanistan with the latest. >> 6:00 this morning a dozen employees of air charter solutions on their way to the airport, a private airline company that delivers airplanes and pilots for their usaid and they were on their way on a minibus was hit by a vehicle, 12 people were killed including eight south african employees and more than a dozen or so other people were injured in
1:09pm
this attack and the taliban claimed responsibility but a taliban offshoot, they are a group in afghanistan negotiating with the afghan government about peace negotiations. this is the first time they have launched an attack in long time but they said it was in response to the anti islamic film that cause problems across the muslim world and the taliban say that it was a 22-year-old girl who was the suicide bomber. most women don't drive and very few are ever suicide bombers. this is a very rare attack in afghanistan. melissa: thank you so much. horrible. on a brighter note photo sharing website shudder, that company -- [talking over each other] lori: can it compete with the elephant in the room? apple? we will talk about that next. melissa: look at metals as we head to break.
1:10pm
we should you oil earlier gold trading down. trading lower as well. [ male announcer ] the markets keep moving. make sure the news keeps coming with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it's an all-you-can-eat buffet for all things trading. thinkorswim by td ameritrade. it doesn't just deliver news. it's making news. trade commission free for 60 days, plus get up to $600 when you open an account.
1:11pm
1:12pm
1:13pm
lori: time to make money with charles payne. this could be the next big hit in mobile ecommerce. [talking over each other]
1:14pm
>> a picture framed. it is rarely easy. [talking over each other] charles: walgreen's and with an an hour you get a 4 x 6, and it is hard to see them as a stand-alone business and an won't argue that. execution has been fantastic. it is a 66 -- >> you send photo cards. charles: i have been in this stock for a while and the insiders are still buying this. i like them to be on the same side and yesterday made a nice acquisition called ping when digital. focusing on mobile land a major breakout. huge volume in the past couple days. i've always thought they would be acquired but even without someone taking them over you
1:15pm
could make 20% on this. melissa: who would take about? charles: a lot of companies need a better mobile presence. could be something -- not a loss leader but doesn't have to be the main cog but someone feeling social media. talk about how interactive you are with this. the idea is i am not sure who the exact suitor is but half a dozen now they're probably -- looked at these guys already kicked the tires. could be volatile but a lot of room to the upside. [talking over each other] melissa: we have to check in. charles: i am happy because melissa likes the company. [talking over each other] melissa: i try to keep honest. [talking over each other] melissa: let's check the markets. on the floor of the stock exchange, looking at a couple
1:16pm
retailers. nicole: looking at two retailers, let's start with kohl's. holiday season is coming. making your list and such a. kohl's is hiring 52,000 people for the holiday season. sound like an astronomical amounts. 62,000 people hiring for the holidays and an average of 41 associates per store. it is the 4% increase from last year. back-to-school pretty good. and they are expecting sales and in the retail stores to be stronger. how about bed bath and beyond? oppenheimer actually cutting bad that and beyond to an outperform. and the upside potential beginning to wane and having to depend on coupons for customer traffic and such. lori: thank you as always.
1:17pm
melissa: speaking of retailers their margins may be getting a little more cushion next year thanks to the magic touch. we will tell you how you can profit. lori: things have totally turned around. we will talk about why and how you can profit. look at the dollar. it is stronger with the euro at 130 one so that is elevated. back with more after this. hmm, it says here that cheerios helps lower cholesterol
1:18pm
as part of a heart healthy diet. that's true. ...but you still have to go to the gym. ♪ the one and only, cheerios ♪ [ male announcer ] how do you engineer a true automotive breakthrough? ♪ you give it bold new styling, unsurpassed luxury and nearly 1,000 improvements. introducing the redesigned 2013 glk. see your authorized mercedes-benz dealer for exceptional offers
1:19pm
through mercedes-benz financial services.
1:20pm
1:21pm
>> 20 minutes past the hour your fox news minute. the national weather service has issued tornado watches in the mid-atlantic region. a watch posted for new york city and philadelphia area until 7:00 tonight. forecasters say strong cold front made produce locally heavy rain and strong thunderstorms are possible. in washington d.c. that area under a tornado watch until 7:00 p.m. and also the possibility of flash floods and strong thunderstorms which could
1:22pm
produce damaging wind gusts and isolated tornadoes. watch out on the east coast. the president of the teachers' union in chicago says the forget a quick decision when union delegates meet this afternoon to vote on ending 7 day strike. gerri willis tells the teachers there are a lot of questions and expects a healthy debate. teachers walked off the job over issues that include performance evaluations and job security. those are your news headlines. now back to lori rothman. [talking over each other] lori: breaking news. bankofamerica.com suffering sporadic outages. people complaining people are having trouble accessing it. if you are having trouble with bankofamerica.com you are alone. [talking over each other] lori: tornado warnings in new york city. that is unsettling. the latest u.s. the report shows
1:23pm
next year's global cotton demand is reserve to. that means cotton prices are down giving a cushion to retailers feeling the squeeze from last spring's high cotton prices. adrian kennedy is marketing director of foxline retailer. it is down to china. let's start here. >> it does comeown to china to the usda report last week. they increased the beginning of september reserves by 1.seven million. they increase the production of indiana and reduce consumption and imports in to china. all that makes for an ongoing bearish look at cotton itself. melissa: will consumers see a decline in retail prices especially clothing retailers? >> you have to go back a little bit. there's a nine month lead time from cotton and the product in the stores so the cotton itself
1:24pm
started being lower year on year in september of 2011 so just starting to see prices and cost of the retailer go down. last year they tried to raise prices and passed along to consumers and were unsuccessful. the customer is not going to see the initial price points, out the door price points intercede much cheaper. melissa: what about retailers? will ac an improvement [talking over each other] >> absolutely. we are seeing two things. the inventories are remarkably clean across the south of the industry and calling that with the cost inflation coming down so they keep a little in their pocket and good for gross margins. melissa: we showed a list of reviewers and retailers. it is scary% from a peak? >> 30% and likely to stay that way through the duration in 2013. stocks would be appropriate
1:25pm
here, gap and abercrombie and pitch and american eagle are the most exposed to this cotton situation. melissa: can you invest in, in? give me an outlook and prices stay where they are? >> exactly. we would not be sure about commodities but this is a look on it. we would not be short cotton but the range of pricing would be $0.65 to $0.85 for the next 15 months through 2013. you will not have a good look at the supply-demand picture until september of next year and what we are expecting is more cotton planting towards corn and meat and soybeans. time to start looking at the commodity on the long side. melissa: suggesting another commodity, that was great info. the managing director, at
1:26pm
capital markets. 47% of americans dependent and in title. mitt romney's comments unfair, a reminder of who pays america's tax burden? lori: apple shares topping $700 a share on i phone 5 excitement motorola is launching a new intel powered smart phone on apple works. let's take a look at some winners and losers on the s&p 500 as we head to break. you can see their health care among the winners up about 6%. we will be right back. want to try to crack it? yeah, that's the way to do it! now we need a little bit more... a little bit more vanilla? this is great! [ male announcer ] at humana, we believe there's never been a better time to share your passions...
1:27pm
because the results... are you having fun doing this? yeah. that's a very nice cake! [ male announcer ] well, you can't beat them. [ giggles ] ohh! you got something huh? whoa... [ male announcer ] humana understands the value of spending time together that's a lot of work getting that one in! let's go see the birdies. [ male announcer ] one on one, sharing what you know. let's do it grandpa. that's why humana agents will sit down with you, to listen and understand what's important to you. it's how we help you choose the right humana medicare plan for you. because when your medicare is taken care of, you can spend more time sharing your passions. wow. [ giggles ] [ male announcer ] with the people who matter most. i love you grandpa! i love you grandma! now you're a real fishman. [ male announcer ] humana.
1:28pm
wouldn't it be nice if there was an easier, less-expensive option than using a traditional lawyer? well, legalzoom came up with a better way. we took the best of the old and combined it with modern technology. together you get quality services on your terms, with total customer support. legalzoom documents have been accepted in all 50 states, and they're backed by a 100% satisfaction guarantee. so go to legalzoom.com today and see for yourself. it's law that just makes sense.
1:29pm
so go to legalzoom.com today and see for yourself. how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. melissa: time for stocks now as we do every 15 minutes. let's head to the floor of
1:30pm
new york stock exchange. nicole petallides is standing by. the housing sector getting a boost. >> the three of you having too much fun on the set. melissa: we were talking about lori's petite size. she is so tiny i could put her on the end of a key change. >> that's all good. different strokes for different folks. goldman is bullish on housing. we got homebuilder sentiment and showed renewed strength with up arrows. these are all down arrows, right? toll brothers, pulte, kb home are all lower. the housing sector has a long list of positives, this is what goldman sachs is saying. their positive is growing for the growth forecast for housing. it is 20 to 30% housing activity growth forecast for the next few years. ways to take advantage of the growth forecast would be names like mdc, kb homes and pulte group and toll brothers. that's why we'll follow some of the housing construction stocks which have done so well this year. back to you. melissa: nicole, petroleum
1:31pm
thanks so much. lori: call it unplugged moment. gop presidential contender rocks the campaign who pays taxes. the campaign sunday fire but what do the facts show. >> "new york times" characterized essentially 47% of the taxpayers who don't pay federal income taxpayers, characterized basically saying dependent and entitle. here is mitt romney. take a listen to what he said causing all the controversy. >> there are had 47%. people who will vote for president obama. there are 47% who are with him dependent upon the government. who believe they are victims it and the government has responsibility to take care of them. they're entitled to health care, food, housing you name it. >> this is causing a firestorm of controversy. basically the critics are saying pushed -- recession pushed a lot of people into the arms of government. which have more baby boomers
1:32pm
are retiring. more senior citizens are getting social security and medicare. we have a very progressive tax system where we have earned income tax credit and child care credits. that is why 47% don't pay federal taxes. but flip side to what mitt romney is saying who pays taxes in this country? who here is who pays the taxes. bottom half, pay 2.3%. steadily move up. 5% of the taxpayers pay, upper brackets, 59%. top 10% pay more than 70%. so basically the bottom line is, the very shrimpersage of taxpayers shoulder the burden of government spending at a time there are record deficits. moody's is threatening to downgrade us after s&p has done just that. that is the bottom line. who pays the taxes in this country? you will see upper bracket and dirty joke in washington, d.c., guys, is that tax cuts for the rich,
1:33pm
well, they're the ones paying the taxes. lori: real hard facts and figures under politics of it all. >> that's right. lori: coming up tonight on "cavuto" neil will have mitt romney's first reaction to the backlash. don't want to miss that. 8:00 p.m. eastern. melissa: motorola mobility revealing its latest razor smartphone. the razr i is out today. it uses different processor chip than other smartphones. joining me is roger kay of end point technology. roger, thanks for being here. you were helping us out with apple's new announcement of the iphone. let me ask you, are your hopes high for this phone? what do you think about it? >> melissa, the importance of this phone it is intel's foray, well, another intel foray into the phone business. intel has been talking about getting into phones for a long time. it has really been a long time coming. now this represents their fourth major phone carrier, actually, this, sorry,
1:34pm
manufacturer but, this phone will be available in a number of markets from different carriers. intel is now becoming more of a force. it is still quite tiny but more after force in the phone business. melissa: for motorola, when they announced in 2011 that they were going to bring back the razr, it was at time when once again the iphone was selling leak hotcakes and a lot of people criticized them saying apple is innovating doing something new and here you are bringing back this concept and this brand that is so antiquated. how did the public respond? did people buy it? is it popular? how did it work out? >> razr is actually quite a good brand if you think about it. one of the reasons motorola brought it back because people rememberedist and liked it. they had decent associations with it. the fact it was a equipment more than half a decade ago really isn't so important. what is important it is a good brand they of the didded off and took back into the market with new technology. melissa: you about in
1:35pm
general, you know, this is another foray from android to take market share from iphone. how is that going? i was driving with someone went into the store, looking for iphone, saw android product, cheaper, looks as good. obviously not exactly the same thing. the price point is quite different and android seems to be taking a lot of market share. >> apple really hates there. melissa: yeah. >> as you're aware apple gone after the google ecosystem. not google directly itself, google's partners, notably samsung. on the legal front apple is mounting all kinds of challenges to android. an droid is out there in the marketplace. people look at it, pretty close. mostly the same. a little bit cheaper. why not go this way. in fact that's happening. for intel this represents a bit of diversification because intel traditionally partnered with microsoft in the wintel duo that puts out most of the pcs. in this case intel is
1:36pm
looking for ways to enter the high mobility market. the kind of device you can take with you carry all day without plugging in. things like phones, tablets and ultrabooks. this is another opportunity for intel to increase its presence in the high mobility market. melissa: interesting. roger kay, thank you very much. >> thank you. melissa: with 49 days left until the election how will mitt romney's 47% entitlement remarks go over with voters? lou dobbs is here next with his take on that. lori: plus 26,000 teachers still striking in chicago going into this week. let look at the treasury market as we go into break. yield is 1.80%. people are buying securities. 30-year is yielding 3.01%. they're buying on long end. william dudley is speaking.
1:37pm
accommodative action does hurt savings that is interesting. we'll see if there is reaction throughout the trading session on comments by that fed official. stay with us.
1:38pm
>> i'm cheryl casone with your fox business brief. the price of gold is set to take off according to bank of america merrill lynch. analysts at firm are predicting that the precious
1:39pm
metal will climb to $2400 an ounce by end of 2014 due to aggressive policy easing by the fed and ecb. morgan stanley purchased another 14% take in morgan stanley smith barney for $1.9 billion. that is according to "the wall street journal" which says the bank has now boosted its stake in the venture 65%. morgan stanley is expected to buy the remaining stake from citigroup in the coming years. >> whole foods selling two businesses for 1.7 businesses -- dole foods. unloading worldwide package foods and aged and fresh produce units to japanese firms in an effort to reduce its debt and pay for an upcoming restructuring. that is the latest from the fox business network. dow down 4 points and change. we're of course giving you the power to prosper
1:40pm
lori: mitt romney under attack after a video surfaced of him describing
1:41pm
47% of americans as dependent and entitled at a private fund-raiser this year. he is not backing down. lou dobbs is here with his take. we're 49 days away from the election. what do you think of the statement and how it will impact the outcome? >> what he said is absolutely true. what he said is absolutely reasonable and logical. and the fact that it be somebody had a telephone camera, cell phone camera in their recording it, this is, if anybody is surprised by this and they're not paying attention to the fact this is 2012, folks. you better be prepared for video and audio of everything you say and do. and i commend the governor and i think the fact is that the national left-wing media in this country is spinning this as a problem when in fact this is the romney we need to see every day on the campaign trail. talking straight. he is speaking truth. and saying exactly what, what the facts are and in fact, what the problems are. in this society of ours right now and we have
1:42pm
created through years, decades, even, of absurd public policy by, you know, little effete, newt alized, elected officials. lori: i wonder if over time -- >> that's what i think. melissa: yeah. lori:. great and powerful opinion. to your point, emac was on talking about fact and figures who pays taxes and what they make up of economy. all the politicking aside, people to your point, you know, 47%, that's absolutely accurate. >> it's accurate. it also doesn't go to the extent that people are not comprehending because the national left-wing media will not do their jobs. they're lapdogs, rather than watchdogs. the, the top 10% of the people in this country are paying 70% of the taxes. lori: yeah. >> have on about, will be. and for this ignorance of class warfare, initiated by this president and his campaign staff, to roll over
1:43pm
and in 2012, it is, it is pitiful, that the national liberal media has no more guts or principle or sense of responsibility than to permit this. you know, one gets infurry eighted with whichever party at time is dissembling or lying out right. can't use the word lie anymore. seems bad form to call a lie, a lie. we'll use misrepresentation. melissa: he misspoke. >> when they lie they need to be called on it by the left and right in the national media. most of the people in national media are not only biased toward the left, they're lazy intellect wally and physically. melissa: bottom line point that 47% of the population gets free stuff from the government. >> yeah. melissa: so they're not going to vote for someone who is against the free stuff. they will vote for the folks that like to give away free stuff. >> this should not be a bulletin it anyone. when we talk about nearly 50 million people on food stamps, when you have 11 million people on
1:44pm
social security disability and rolls are rising, faster than unemployment rolls, five million people added, to the disability rolls. social security, disability and 3 1/2 years under this administration. this is, is, it is madness. and these candidates should be talking about it. and they both should be engaged in the discussion about huy much economic growth must we create to create jobs. this nonsense has got to end. the entitlement society we created will collapse of its own weight. the choice is ours as to whether or not we are going to end it in time to be constructive for following generations. lori: powerful conversation. we should do this every day. melissa: why not? why not do it at the same time? >> that's a great idea. lori: we always come up with new an brilliant things. >> the producers must be proud. lori: we will watch i at 7:00 and 10:00 eastern as well this evening. tonight catch joel klein, executive vice president of
1:45pm
news corporation to talk to lou about the latest on the chicago teachers strike. have they finally reached a deal and what will it cost taxpayers. melissa: it is almost quarter to. lori: are we late? melissa: we try to do it every 15 minutes. nicole petallides on the floor of the new york stock exchange. you're looking at major movers. >> we're looking at energizer. let's start off with energizer when you look at it you think about batteries for the most part. they are completing a review. this should ultimately work well. up 12% today. working on cost structure and operating model which will bring them cost savings of $200 million. so that will improve their profitability and drive the long-term growth. they're noting they reaffirmed earnings outlook for the fiscal year. you see energizer here doing so well. they have the shaving products as well. so energizer has batteries and shaving products. of course they have to compete directly with proctor & gamble.
1:46pm
look at advanced micro devices. advanced micro is one to watch as we see advanced micro and intel come under pressure on weak pc sales. we have changing of the guard. the chief financial officer, is leaving and he actually stepped in as ceo for a short time but he wants to leave and go become his own ceo of this other company. some of the effects don't know as much as he did because he was there. back to you. melissa: nicole, thanks so much. the chicago teachers are still striking. if they don't end their conflict with the chicago public school system soon there may be a deficit of 26,000 teachers in the september jobs report. peter barnes has more on this art of the story i'm not sure everyone thought of, peter. >> that's right, melissa. this would happen right in the middle of election which jobs are kind of a big issue i recall. there are 26,000 striking teachers. under labor department teachers if they are not back to work by the end of their pay period, this friday, department economists will subtract all
1:47pm
of them from nonfarm payrolls for the month of september. and with nonfarm payrolls averaging 100,000 job as month for the last six months, that could look ugly when the report is released october 5th, a month before election day. but if the teachers are back on the job in october, they would get, added back into the payrolls report for that month, which is released november 2nd, giving the payroll number a little boost, five days before the election. >> so you have a small minus for the president now but maybe a plus for him as you go into the elections but it is all perception. there is nothing real here going on what is really happening to the underlying jobs picture. >> that 26,000 jobs plus or minus in the next two months is not going to make a big difference at this point he thinks. voters know underlying jobs growth is not good. golf thinks at this point to
1:48pm
have a big impact on the election, jobs numbers would have to be really good or really bad for two months in row. melissa, and lori. melissa: but, peter, if they're not counted in the jobs number, does that mean they're not being paid? the chicago budget are saving money or school board is saving that money? if we're going to start counting all these numbers into the bigger number at end of the day it is all about money. is the city saving all that money. >> in theory, yes. as far as reporting goes labor department all they care about is little form. though send it out to employers including the chicago school system. how many people receive ad paycheck. melissa: right. >> for this period? and, the teachers are getting paid right now through a strike fund. right? melissa: interesting. peter barnes. so they're not getting paychecks from the school system. >> not getting paychecks. melissa: this is all about money and deficit in first place. how much money are they
1:49pm
saving. we'll have to follow up. >> do your wheels ever stop turning? lay off the caffeine a little. new high for shares of apple, topping $701 in today's trade. is it wise to jump in at these levels? melissa: in case there is any doubt, it is good to be a billionaire. i wouldn't know. what about a millionaire? maybe not quite as good. we'll explain. take a look at some of today's winners and losers on the nasdaq as we head out to break here. apollo group trading higher on the day about 3.2%. we'll be right back.
1:50pm
1:51pm
1:52pm
lori: very sad news this afternoon. nfl films president steve
1:53pm
zabol we learned has died. 18 months ago steve was diagnosed with brain cancer. he was 69 years old. he was weeks away from the 70th birthday. he founded nfl films with his father ed who survives him back in 1964. melissa: what sad news. apple hitting all-time high of $701 a share today. analysts are saying the stock is in danger of being overvalued. sandra smith is here with today's trade. sorry you have to follow that, sandra. >> definitely unfortunate news there. skeptics are coming out with apple climbing into the 700 club. the reason being because a lot of recent tech stocks we saw joined that club struggled including google. google entered the 700 club back in 2007. it later dipped as low as $200 a share at the peak of the financial crisis. it took years to rejoin the 700 club as it did this earlier in the month.
1:54pm
priceline.com, it too recently joined the 700 club. it is now well below there at $640 a share. so it didn't last long. apple a bit of a different story. flirting with the $700 level. average analyst estimate is still $750 a share. so many of them still forecasting a jump from here. by the way, there are a dozen or so brokers calling for over $800 a share. bank of america, merrill lynch, really pinning their upgrade on the price target this morning, guys, to the fact that iphone five sales are through the roof and nobody wants to step in front of the train right now. there is still a lot of bullish sentiment. back to you. melissa: sandra smith. thanks so much. lori: new research shows the rich don't get richer but the really, really rich, they do. research company broke down the numbers saying millionaires lost money last year while billionaires made more money. they say the total number of people with 30 million in
1:55pm
the bank dropped 2% in total. almost $25 trillion. billionaires wealth jumped 14% to 6.2 trillion. billionaires have all the experts at their fingertips, ready to give them best tips to grow the money. good advice makes the difference. your broker is calling on the phone. aim higher. >> makes sense. billionaires have the most money. they're good at collecting it and hanging on to it i guess. lori: but might go to show you a millionaire is, cost of living is always fascinated me in this country so different from region to region it is really hard to say a million dollars is that rich? a billion dollars, definitely, no question about that. melissa: more dependent on real estate and real estate has been declining. billionaires are dependent on jets. lori: good point. melissa: coming up tonight on "money", james jeffries, former ambassador to iraq and turkey. we will talk the new terror
1:56pm
strategy targeting diplomats and foreign workers and how it will affect investment in the middle east as businesses pull employees out and put businesses on hold. this is one of the big impacts from everything we're seeing beside obviously the human toll. they have a lot of corporations say they will bring their people home because it is just too dangerous. what impact it will have on the global economy. interesting take. lori: sorry to talk over you. driving economies. who wants to invest now with pictures of instability day after day. melissa: absolutely. lori: coming up after the break the markets have had a good run so far. but ashley webster and tracy byrnes says you should be cautious if you're going to buy in this market. he will have two stocks to tell you to buy. he will tell you why. [ male announcer ] you are a business pro.
1:57pm
governor of getting it done. you know how to dance... with a deadline. and you...rent from national.
1:58pm
because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro.
1:59pm
>> down 10 points here on the market. what are you laughing about? >> smirking. i didn't know what to say.
2:00pm
i'm looking at flags waving and trees, tornado warning in new york city. ashley: very stormy out there, isn't it. lori: traders downtown watching. melissa: maybe they're home. watching tv. ashley: thank you, ladies. tracy: happy new year. i'm tracy byrnes, i'm ashley webster. apple stock busting through another milestone on astronomical hopes for the iphone 5. since it dropped more than two from the intraday record, can the company keep up its stunning run? tracy: a new warning from fedex says not even the fabulous iphone 5 can make up for global weakness. fedex says its customers are still aggressively cutting costs. we'll look how the warning could say more about the state of the economy than any other government reports we're getting. ashley: united states is one of the world's most economically free countries. think again. the cato institute says the
2:01pm
u.s. dropped from the top 10 to 18th on the list in its annual report. coauthor ian vasquez will be our special guest ahead to explain that. 18th in economic --. tracy: we were 10th last year. he has got to tell us what is going on. time for stocks as we do every 15 minutes. we head down to nicole petallides on the floor of the new york stock exchange. nicole we're down about eight points right now? >> right. the truth is yesterday we gave back about 40 points. wee had two weeks in a row about gains. fed stimulus and bond buying extending low rates. everyone seems to be taking a bit of a breather. right now the dow is down as are s&p and nasdaq as well, all to the downside. down .1 or .2 of a percent. we have winners like apple which obviously broke new records. fedex has come under pressure. fedex once again is warning about a tough global economy. so they came out with their numbers today. they are having to reduce
2:02pm
their outlook to a certain extent talking about the big macro picture they're just not shipping as much. they have been cutting costs in order to account for that to offset the pinch they have been seeing from a weak global economy. the fact that manufacturing activity worldwide has been pulling back. that in turn hits them. back to you. tracy: thanks, nicole. we'll see you in 15. ashley: our next guest says you should be cautious if you're going to buy into this market. keith wirtz is president and chief investment officer for fifth third asset management and joins us now. keith, thank you for joining us. if you missed this rally, boy you're not feeling good about it but what is the biggest threat you think to the market right now? >> well, there is so much chatter about the qe3 announcement of last week, if you look back over the last three or four months, this market has been move in advance of this news announcement from the fed. i think markets largely discounted what we all expected last week. as we stare at the forward look now, we have the got
2:03pm
the election of november. with we have the big fiscal crisis in washington, d.c. later in the year going into 2013. there is lot of news right now coming at marketplace on a go forward basis. i think given the rally we enjoyed the last five and six months maybe now is the time to take some exposure off the table. ashley: that is a good point. does market need reality check? the fact we have qe3 suggests that the economy is weak enough that the fed wants to give it extra help. are we overbought and due for a correction? >> feels like that to me technically. you have got the majority of s&p stocks trading above their 50-day moving average. something like 85% of the stocks are trading above the technical indicator. it feels a little tired to me, a little worn out and i think it is due for a pullback of some type. there will be better chance to buy at lower stock prices at the end of the year. ashley: if you buy on the dip as you suggest, what areas do you like? >> well if you missed this
2:04pm
rally it is frustrating. i think one of the changes you want to emphasize on the purchase program would be quality. we like companies with good stability of earnings right now. we want companies with good dividend policies. good strong balance sheet conditions. two stocks i like in particular. one i recommended on the show in the past, national oilwell varco. equipment provider to the offshore drilling segment of the marketplace. we think it is an excellent company. a great way to play the recovery in the global oil markets. given the valuation right now it is not too expensive. we think it is a nice way to play this marketplace. another area would be the health care sector, pfizer the pharmaceutical. this company had a new ceo come into place. he's returned their focus on cost containment. they have a great r&d pipeline the stock is trading less than 11 times forward earnings. to us it looks like a great quality stock that might be a nice addition to a portfolio. ashley: how concerned are you, keith, of corporate
2:05pm
profits? certainly they're showing signs of faltering. we have a sobering outlying from fedex today. how much of a concern is the global outlook and weakness to corporate profits? >> fedex results issued last july, revenues were actually negative. top-line growth has gone negative. we think q3 earnings which will be announced in two or three weeks, that is when the season kicks off. expectations may be modestly high. i think this revenue growth or lack of it is indicative of economic slowdown. we're worried that we're too close to a recession condition. that is another reason why we're a little cautious at this time. ashley: understandably so. thank you so much. keith wirtz of fifth third asset management. keith, thank you so much. tracy: to add to that oil tumbling again today after yesterday's volatile session when it plummeted nearly $3 in less than one minute. jeff flock was in the pits of the cme then and is there now again. jeff, what is the latest on
2:06pm
all that? >> i like to go to the good news. meat is behind me, cattle and hogs that is only thing up pretty much today. i want to get todd's look on this let me bounce something off you, todd. look at the intraday chart. precipitous drop today. oil down $1.37 at number i'm looking at, todd. look to what we pieced together from traders today. yesterday we didn't talk about grains but grains were down yesterday. limit down soybeans. soybeans on the theory of some triggered some margin calls for some traders who also had oil. they sold to cover. the spr rumor was out there. >> options expiration out there. thin market starts to trigger stocks and there you go, you have a cascade. do you buy it? >> i don't. oil is covering a range between 94 and 100 going back six weeks. a release of strategic reserves or something happening in the middle east will trigger a breakout of
2:07pm
that range. >> where do you see it going right now? >> right now probably leading to downside. as we get closer and closer to the election this will be a politically driven market. if we see it rise above 100 because of issues in the middle east which are starting to drive up. >> before we get away, traders talk about the presidential election. talking about the releasing romney tape? some traders told me they think it was a positive? >> i think it was positive action for governor romney. if he can spin this he can make himself very presidential the way he happened else it. >> seems more real. that is what the guy really thinking. that is what some traders told me. >> exactly. >> another spin from the floor of the cme, guys. back to you. tracy: i love it that he is honest. did he believe it? no. jeff flock, thanks very much. ashley: tracy, gas prices have fallen for the last four straight days but that is not offering much relief to drivers for sure. national average for a gallon of regular gasoline,
2:08pm
3.86. that is just shy of the peak we saw back in april, 3.88. prices are up 14 cents from a month ago. 26 cents from a year ago. it is unusual for prices to be so high after september of course after the summer driving season ends. last year gas prices fell 20 cents per gallon from early september to early october. guess what? we're dealing with rising price of oil up from 84 bucks at beginning of june to almost is 100 dal a barrel. new fed stimulus which impact the price and yes the pain at the pump. so the prices are staying higher for later in the year. tracy: even the surrounding area still over $4. connecticut. you have to pump it too. ashley: expensive, 4 bucks. >> why jersey is so fabulous. coming up making money with charles payne. he will give us one education gaining big ground today. so does it have more room to run? ashley: a troubling side for privately hefled companies which create more than 2/3
2:09pm
of jobs. sage works ceo brian hamilton will tell us why their sales took a drop. oil off 100 bucks. 95.57. down another percent on the day.
2:10pm
2:11pm
2:12pm
ashley: it's that time to make money with charles payne. he has follow-up on
2:13pm
yesterday's recommendation and a brand new stock pick. the question which one is it, charles? >> remember we talked about f-5 yesterday? ashley: yes. >> the market, there it is f-5 up 6%. oh, boy. thought about you and tracy. apparently cisco might bow off the networking space leaving it all up to f5. the tape generally tells you when news is coming. for those most interested, most news, not saying at this time, most niece is 890% of the time is leaked and can find it through volume. ashley: that is a good tip. tracy: what do you like? >> i like k-2. symbol is lrn. ashley: learn. >> forget about the chicago teachers strike. ultimately the teachers will need this kind of stuff. help the kids at school. go home. learn online. this is the best company in the country. tracy: it is cool. they have online tutoring. >> online tutoring help if
2:14pm
the kid is hurting or advanced. 26 states, 36 countries. execution is so so. in the january quarter they beat the street by 66%. stock in narrow range. people wonder how you fun this kind of stuff. ashley: sure. >> if you're looking for a play in that space. i like it a lot. my target is the 25, $26. 19 would be a stop-loss only because of volatility. tracy: we're back to school right about now, parents start panicking their kid doesn't know enough or maybe -- that is my story. >> 48 hours into it i started panicking. tracy: sound like this. >> my son pledged to me, made me a pledge, that i was buying him $180 sneakers he pledged he would do better this year. we'll see. tracy: you fell for that, charles? you're smarter than that. >> i know. whenever it comes to my son i'm stupid. tracy: no you're not. you will like this story, charles, don't move.
2:15pm
alpha natural resources i know one of your favs is cutting 1200 jobs. 9%. coal miners had to stop production at some mines because of decreasing demand for coal. the company is switching gears to steel making coal and plans to halt work at eight mines immediately. they produced 1.1 billion tons of coal. ashley: sound like a lot. tracy: sounds like a lot, right? it is down 4%. we'll talking about how the administration is killing the coal industry. >> house put out h.r. 309 listen call off the epa all the rules will cost $100 billion, 300,000 jobs. up electrical costs. patriot coal, alpha natural resource in trouble. i got out of this one a long time ago. to your point, metallurgical coal is still attractive. ashley: right. >> the amount of jobs will be lost over this, this is hand fisted way to do it. you want better plant if you're coal company, but
2:16pm
don't make me do it overnight. ashley: jobs are disappearing. tracy: thanks for sticking around. ashley: as we do every 15 minutes. nicole petallides on floor of nyse. nicole, another apple, could this be right hitting another major milestone, right? 700 bucks. >> it is indeed another milestone for apple once again today. a new all-time high. 701.44. so breaking through that 700 mark. right now you can see it is up 42 cents. iphone 5, the sales of preorders have been setting records. some of the analysts were worried that it lack ad wow factor. others said wait, these are significant improvements, whether faster processor, larger screen, lighter in general. sexier model. everybody is getting out there and will want them. that's exactly what we're seeing here. orders are setting records. the thing i thought was interesting the move here to $700 came six months after the stock crossed $600. that was seven months after
2:17pm
it passed $500. so does that mean in six or seven months it will be at $800? could be sooner, could be later. who knows? back to you. ashley: pretty impressive pace. is there a psychological point at which point you say okay, fairly valued. tracy: because it's not. that is the thing. it is still cheap at this price which is so bananas. ashley: nicole, thank you so much. appreciate it. nicole is absolutely right. look at chart, 100 bucks every six months. tracy: holidays coming. seems possible. coming up we have a new report that find the united states sliding down on the list of the world's most free economies, which is kind of bananas. the cato institute ian vasquez coauthored the report. he is our guest next. ashley: let's look how the green back is doing against those foreign currencies. let's have a look. euro is down to the dollar. they're all down except for the yen a touch higher. we'll be right back. [ owner ] i need to expand
2:18pm
to meet the needs of my growing business. but how am i going to fund it? and i have to find a way to manage my cash flow better. [ female announcer ] our wells fargo bankers are here to listen, offer guidance and provide you with options tailored to your business. we've loaned more money to small businesses than any other bank for ten years running. so come talk to us to see how we can help. wells fargo. together we'll go far.
2:19pm
2:20pm
and waiting in line. i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps.com, you can print real u.s. postage for all your letters and packages. it gives you the exact amount of postage you need the instant you need it. can you print only stamps? no. first class. priority mail.
2:21pm
certified. international. and the mailman picks it up. i don't leave the shop anymore. [ male announcer ] get a 4-week trial plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. >> at 21 minutes past the hour i'm skrul yet huddy with your fox news minute. at least 12 people were killed after a bombing in afghanistan. officials say a bomb loaded with explosives slammed into
2:22pm
a minibus carrying foreign aviation workers in kabul. the attack was retaliation for a anti-islam video made in america. we heard about this one and posted on the internet last week. moving on striking teachers in chicago meeting to vote on an agreement ending the walkout affecting 350,000 students. if there isn't a deal a judge will hold a hearing tomorrow on the sit's request for an injunction ordering the teachers back to work. listen to this. sad news as nfl films president steve sabol has died. he was diagnosed with brain cancer 18 months ago. he was weeks away from his 70th birthday. he founded nfl films by the way with his dad back in 1964. steve zabol dead at 69. -- sabol. ashley: nfl films are fabulous. >> they are. ashley: juliet, thank you so much. tracy: the u.s. is long considered the
2:23pm
standard-bearer for economic freedom among large industrial nations but a new study finds among the world's most free economies the u.s. is actually way down at number 18 now. the cato institute found that the top five countries are australia, canada, and in fifth place. actually, the other countries, we didn't, are they up? can you guys put them up? there they are, switzerland in fourth. new zealand in third. singapore in second, hong kong in first. hong kong-singapore have been up there for a while. ian vasquez the director of cato institute center for global liberty and prosperity joins us now. ian, we were 10 last year. we slipped to 18. what the heck happened? >> well, there is accelerated rate of the loss of freedom in the united states. but let me point out that the united states was number three for decades from 1980, in the 9 1970s up until the year 2000. the trend of loss of freedom in the united states is decade long trend n 2005 it
2:24pm
was 8. now we're 18. this is something to worry about. tracy: talk first how you determine economic freedom. it is correlated to the country's growth, isn't it? >> we say there is economic freedom when there is personal choice, when there is competition, when there is voluntary exchange and when there is protection of the people and their property. when that exists you have an environment of economic freedom. what we found in this study which is just an empirical study, there's a strong relationship between economic freedom and prosperity. between economic freedom and growth. the countries more economically free tend to grow much tasker. and -- faster. economic freedom and improvements in a whole range of indicators of standard of living. this is what this study has found year in, year out. tracy: one of the things you pointed to, part of the u.s.'s fall is, you know, the sanctity of contracts. we've seen contracts being basically thrown out the window over the course of the last couple years.
2:25pm
reliability of our legal civil, all that is playing into our decline, isn't it? >> yes. i think that's right. and, specifically, when you think about the big bailouts, favored industry, the banks, the financial industries, the automobile industry, where the federal government basically replaced the political decision-making in bankruptcy as opposed to a market based decision. tracy: right. >> these are not just bad economic policies that go against economic freedom. tracy: right. >> this is, stinks of crony capitalism and it undermines the rule of law. if you look at the report, the indicator of the rule of law takes a real dive. it's it's the area that has gone down the most in our findings. tracy: yeah. there goes our freedom as well. quickly, we only have a few seconds, chile, one of the greatest success stories. how come? >> chile was in the 1970s was one of the least free countries in the world. then it implemented because the first country in the world that set out to create
2:26pm
a free society based on a free market economy. it implemented the perhaps the most coherent set of complimentary market reforms that had been seen certainly at that time. it was a pioneer. now it is number 10. freer on that the united states, one of the great success stories. it led to higher growth and if it keeps that up, within 10 to 15 years it will be a developed country. tracy: good for them. not so great for us. ian vasquez, thanks for bringing all this to us. >> thank you. ashley: interesting stuff. certainly heading in the wrong direction from third to 10th to 18? tracy: sanctity of the contract and the fact that it no longer holds i think that is really disheartening. ashley: that is pretty sad, sad statement. coming up, outrage over a new report showing 25% of all social security disability benefits are flawed. wills will tell us how it is costing you the taxpayer millions of dollars next. tracy: first look at some of today's winners with and losers on the s&p 500 as
2:27pm
head out to break. tenet health care up on top [ male announcer ] it's simple physics...
2:28pm
a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis sympto. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier.
2:29pm
celebrex can be taken with or without food. and it's not a narcotic. you and your doctor should balance the benets with theisks. all prescription nsaids, like celebrex, ibuprofen, naproxen, and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increases if you have heart disease risk factors suh as high blood pressure or when nsaids are taken for long periods. nsaids, including celebrex, increase the chance of serious skin or allergic reactions or stomach a intestine problems, such as bleeding and cers, which can occur without warning and may cause death. patients also taking aspirin and the eldey are at incrsed risk for stoch bleeding and ulcers. do not take celebrex if you've had an asthma attack, hives, or other allergies to aspirin, nsaids or sulfonamides. get help rightway if you have swelng of the face or throat, or trouble breathing. tell your doctor your medical history and find an arthritis treatment for you. visit celebrex.com and ask your doctor about celebrex. for a body in motion.
2:30pm
looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank, like no-fee atms, all over the world. free checkwriting and mobile deposits. now depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and discover another reason serious investors are choosing fidelity. tracy: no tornado yet. ashley: no. but we are nailed down just in case. bottom of the hour. as we check the market every 15 minutes, nicole petallides on the floor of new york stock exchange. nicole. >> thanks, ashley and tracy. i'm joined by doreen mowing guevara. we always look at the market
2:31pm
hovering not too far off the unchanged line. you talk about fed stimulus and open-ended bond buying, what do you make of it all? >> it signals to me the fed thinks we'll be in for a very long time very slow growth. i think that in itself is very frightening. i will take the negative side. the market loved it but they know they will be there. i don't love it because i don't really want them to have to be there, right? >> it is always a double-edged sword. why the fed has to do that ultimately because the economy is not growing and it's terrible. let's talk about what we've been seeing as far as fund flows. that is something you are watching. talking about money flowing out of equity and into funds, what do you think? >> recently we saw a lot of funds flying out equities, single stock equities into etfs. obviously equity related, most of them. i think we're seeing now that, well, i think it is, because it was really meant to make people more flexible shorter term, shorter term strategies than long term equities seen as a lumbering
2:32pm
move. but now they seem to becoming out of etfs going into the bond market. etfs are starting to see outflows. if people are looking for hard assets and bonds. >> safety. a little safe haven. doreen, thanks as always so much. back to you guys. ashley: not that bad. cheer up, guys. thank you, nicole. almost shed tears there. it's all right. we'll get through it. we always do. tracy: no tornado. here is shocking. here is another example of your taxpayer money well, just wasted a new report shows the social security administration improperly awarded disability benefits in more than 25% of the cases examined between 2006 and 2010. gerri willis is here with this. you know what cracks me up? they go back and audit themselves and go oops. >> they don't audit themselves. senate, outside group here
2:33pm
looking at these documents. it is really shocking when you dig into these what you say. there is no foundation for the claims is what you find. i looked at a specific case a guy in virginia made a claim of lower back pain. guess what, when he went to the doctor, the doctor's report didn't say, hey, this guy had severe lower back pain. they couldn't find evidence. when he went to a judge, said, look i deserve this disability he got it. that is --. ashley: no medical backup at all? >> the government hires outsiders, these specialists, so-called specialists to fill in the gaps of their lack of knowledge and this is what happens. and of course the disability rolls are growing like topcy. one judge alone, howard o'brien in oklahoma city, approved 90% of the more than 5400 cases he heard you guys described. awarded 1.6 billion in payments. we wonder where the taxpayer money is going to. tracy: call me a skeptic but does he get a kickback? >> that question was not asked. tracy: should have been on the audit report.
2:34pm
ashley: many cases not many you do see the case of a bad back. they have a construction job on the side and all the rest of it. tracy: put pictures on facebook of them doing the macarena. >> you know the average person who gets disability gets $300,000 over their lifetime? ashley: that is lot. >> only reason they exit the program because they get old enough to get social security. ashley: that is only reason. tracy: will gerri willis. are you talking about this tonight. >> yes, we will be. tracy: 6:00 and 9:00 p.m. on the fox business network. ashley: guess what. breaking news. oil prices close down a buck 33, settling at 95.29 a barrel. that is oil's second day in the red after pushing through the $100 barrel mark late last week i think it was. there you go, backing off. the stronger dollar being a part of that. tracy: definitely. >> is fedex the ultimate economic indicator, if so, there is profit warning today. that is bad news not just for investors. the shipping giant is saying
2:35pm
weakness around the globe. adam shapiro is joining us with more on this story. adam. >> if you look after they released first quarter results, ashley, the stock took a hit as it came out. i will read you two quotes that got everyone upset as we look not only where they're trading but video of fedex shipping because we're all familiar with the fedex package. first the ceo saying weakness in the global economy constrained revenue growth at fedex expressed in first quarter and affected our earnings. in the release, regarding the outlook, has everyone worried, their expectation as weak global economic conditions dampen revenue growth by a shift of our customers to prefered services and outpaced ability to reduce fedex express operating cost too much demand levels. here is what is going on. came in $1.45 diluted per share. net income, down 1% from the first quark last year, 464 million. that upset everybody.
2:36pm
the guidance for the second quarter quart, earnings per share from $1.30 to $1.45. that is down $1.57 diluted from the second quarter last year. one saving grace. i got my notice that fedex is bringing my iphone 5. say that 10 times fast as are millions of others delivered not only through fedex but ups. that is one-shot deal after the initial flurry of those deliveries. after the second quarter, guidance not good. back to you. ashley: adam shapiro doing his part to turn things around. tracy: he is getting fancy. i love that. coming up we have got more concerns about the global economy. this time from privately held companies. sage works ceo brian hamilton will tell us what they are most worried about. that's next. ashley: first as we do now every day, let's see how the 10 and 30-year treasurys are moving. 10-year dropping again another four basis points to
2:37pm
1.79%. we'll look at the 30-year treasury for you, down three basis points right at 3%. we'll be right back. [ male announcer ] what if you had thermal night-vision goggles, like in a special opsission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform.
2:38pm
trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. >> i'm lori rothman with your fox business brief. one federal reserve member is defending the central bank's latest round of quantitative easing saying this was the time to act. speaking to a business group in michigan this morning the president of the chicago fed charles evans says another round of asset purchases was
2:39pm
needed given the problems facing the economy and the potential dangers lying ahead. confidence among u.s. homebuilders surged to a six-year high this month the national association of homebuilders sentiment index increased to a level of 40 from 37 in august. the index also showed that many expect the housing recovery will strengthen in the next six months. coles says it is boosting hiring for upcoming season 10% from a year ago. kohl's say they will hire 52,000 workers who may be able to work 20 hours a week. that's the latest from the fox business network, giving you the power to prosper.
2:40pm
tracy: privately held companies have been shrinking sales growth recently. that could actually have a significant impact on job creation and gdp growth. joining us now to look at challenges facing private companies is a cofounder and
2:41pm
ceo of sage works incorporated, brian hamilton. brian, good to have you back. i think one thing a lot of us miss, i sure did, that private companies drive 50% of the gdp. we're always talking about publicly-traded companies. >> at least. 26 million companies, only 5,000 which are publicly-traded. the vast amount of energy is generated by these private companies. tracy: job growth, 65% of job growth comes from privately held companies. >> at least. past two years, you know because i've been on before these companies are growing very well but their rate of growth is down by 50% in the past six months so we're getting a little bit concerned. tracy: sales growth is still at 5.4% but you're saying that is slower amount of growth than they're expecting? >> no question. last year, 8, 9%. year before about 10%. when it goes down by that much we get really concerned about next year and jobs obviously. tracy: what is the reason? what are they concerned about? >> well look, not that they're concerned. they're always concerned when their sales are going
2:42pm
down. these are main street companies and when they have less money coming in the front door, that's an issue. it means their customers are buying less right now by about 50%. usually this data is a precursor as to what will happen in the future. so that's why we got the you data. this is really the first time it is aberrational data over past two years we gave you good news. so last six months it is not so hot. the trend is more important than the number. tracy: you're saying that the trend is down? way down. tracy: what are the reasons they're telling you? >> no one knows. we're in about 36 months of recovery, right the news has been good, not great on the gdp front but going up, right? we've had a recovery. the average expansionary cycle is four years. we're into 37 months. we're concerned about, we don't know, but does this mean that a recession is around the corner? we don't know yet but we don't like that rate of growth going down. it is way down.
2:43pm
tracy: it is same things though, right? still nervous about the future. can't plan. uncertainty. interestingly kind of corresponds with nfib small business optimism index as well. >> sure. tracy: they have the same concerns. >> they have had those for a while though. tracy: they certainly have. >> here's the thing, fundamentally these companies have done very well for two years. things are going well. they're going down now, right? fundamentally they're doing well. the finances are good. sales are going up. profit margins are good. we look to the government. here's the issue the government needs to know that they need a really cohesive policy, co -- coherent policy just to give businesses warning what is coming down the road. that's the one thing we're worried about. these businesses are adaptive. they can change. tracy: right. >> they're good. they're agile. they need to know what the policies are going to be. that is the big issue right now. washington has to get its act together and tell these
2:44pm
people so they can plan. even a bad policy, if the businesses have enough time is better than. >> better than none. thanks for bringing this stuff to us. brian hamilton. ceo of sageworks. ashley: one million dollar marketing campaign to promote president obama's health care law is taking hollywood by storm. dennis kneale is all over this story. dennis. >> ashley, hollywood may be ready for new kind of hero, new incredible hulk, multimillion-dollar government program that will save lives and create better world. it is obama care. "new york times" reporting without irony or umbrage or a coughed eyebrow, obama's new obamacare paid ogilvy worldwide to promote obamacare. persuading to hollywood to i am bed plots in shows such
2:45pm
as "grey's anatomy" and modern family. the agency doing this, the california health benefit exchange, back away putting out a statement for me and fox biz today. saying quote, the exchange is reviewing an evaluating a number of ideas. there have been no specific plans developed for tv. which means, almost nothing. but the pr firm may hawk a reality show on family struggling without insurance coverage. they have other possibilities. just imagine how gloria, the latina bambina on modern family would react to being told she has to have coverage or pay a fine? profile the medical gear ceo who told me a obamacare tax will wipe out all of her company's profit growth. but such story lines are unlikely because hollywood loves obama the president has been on "the view", a has-been on leno. michelle obama has done leno, jimmy fallon, nick lodine,
2:46pm
and others. president bush recently did a cameo in hollywood. it is his severed head on a stake in the hbo film "game of thrones". that might be how hollywood reviews republicans versus how they will view obamacare, ashley. ashley: the message is clear on that one. dennis, thank you very much. >> okay. tracy: all right. it is quarter until the hour. got to get a look at stocks as we do every 15 minutes. nicole petallides on the floor of the new york stock exchange. hey, nicole. >> the energizer bunny keeps going here. we're looking closely at energizer today. the stock is doing well and on the heels of what they're doing with their company, reviewing their cost structure and operating model. they're working on a cost savings of nearly $200 million. that ultimately will improve profitability and drive their long-term growth. at the same time, energizer actually reaffirmed their earnings outlook for the fiscal year. so take a look. you see the stock is up more than 11% today.
2:47pm
and just talked about benefits that have been accruing and we'll see them come to fruition in the second half of fiscal 2013. good news there for energizer. they have shaving products as well as batteries. a great day up over $7. 7.65 to the upside. back to you. tracy: nicole, see you at the top of the hour. ashley: coming up incomes, apple's stock touching $700 a share. where does it go from here? smart money's jack hough has another stock that could move up big on the iphone 5. tracy: first let's look at some of the winners and losers on the nasdaq as we head out to break. the dow is down about 7 points right now want to try to crack it? yeah, that's the way to do it!
2:48pm
now we need a little bit more... a little bit more vanilla? this is great! [ male announcer ] at humana, we believe there's never been a better time to share your passions... because the results... are you having fun doing this? yeah. that's a very nice cake! [ male announcer ] well, you can't beat them. [ giggles ] ohh! you got something huh? whoa... [ male announcer ] humana understands the value of spending time together that's a lot of work getting that one in! let's go see the birdies. [ male announcer ] one on one, sharing what you know. let's do it grandpa. that's why humana agents will sit down with you, to listen and understand what's important to you. it's how we help you choose the right humana medicare plan for you. because when your medicare is taken care of, you can spend more time sharing your passions. wow. [ giggles ] [ male announcer ] with the people who matter most. i love you grandpa! i love you grandma! now you're a real fishman. [ male announcer ] humana.
2:49pm
2:50pm
2:51pm
as the details. >> bank of america denial of service attack on its web site. group claiming to be allied with muslims is taking responsibility for the attack. the group claiming anger over american zionism and the film locking islam is offering links to contribute to attacks on bank of america and the new york stock exchange. this group is using a site often used by attacking the groups to publicize cyberattacks. the new york stock exchange has not seen a disruption. bank of america has not commented and no way of
2:52pm
verifying if the group is islamic. shares of bank of america are down 1-1/3%. new york stock exchange offer by 3% in today's trading. ashley: no word or reaction from bank of america? >> they have not commented. >> some disruptions in the web site. is it working? >> i'm not logged in at the moment but they had these attacks going on and it is on the screen right now. ashley: no way of verifying would group is tied to islam. that is their claim but no way of verifying that at all. >> absolutely. no way to know who it is. they are claiming they are muslims or allies with muslims and no way to verify who they are just yet. authorities are researching and tracking as we speak. tracy: we don't feel lot of movement in stock but if this
2:53pm
continues it will certainly move the stock towards the end of the day and people at home once to know if they have access to their money if they go on line. that will be the most important thing whether atms are affected. no word of that. robert: no word on the atms. just a website at this time. ashley: interesting stuff that we will follow with some comments from bank of america. looking for a way to play the i phone sales surge other than buying apple's stock my next guest says consider buying shears of seagate technology, maker of computer hard drives. associate editor of smartmoney.com, thank you for being here. $700 a share. who can stop this juggernaut? how high could this go? i see price targets of 770 to 850. what do you thing? >> ultimately dependent on the
2:54pm
enthusiasm of investors. the key is the stock is 16 times earnings and just a smidgen more expensive than the broad stock market. certainly the largest company in america. to double my money, they don't see that kind of growth with companies this large. become that much more difficult to expand the business. >> it is okay. it is a screaming bargain. ashley: are you concerned two thirds of the profits, comes from the i phone? >> companies we own share of to build market share. and they have a misstep or lose that share. there is a study that shows
2:55pm
historically, and by industry leaders, terrible strategy because if you are always buying copies--companies that are number one that tends to turn over and haven't done great. ashley: let's talk about seagate. an offshoot from my phone or technologieswide. and to get in on the i phone and you can look at qualcomm and chipmaker, and mechanical hard drives. and perceived as an iphone victim. and for personal computer we no longer buy machines with big bulky hard drives or buy them as much as we used to. or four times earnings. it is a quarter as expensive. and disappearing.
2:56pm
avalanche google and hewlett-packard. and data forms. and hard drives. business is booming at seagate and low expectations way to get in on the smart phone craze. [talking over each other] >> back in the newsroom with more on banc of america. >> denial service attack on their web site. and claiming to be allied with muslims, for the attack. and the recent film mocking islam targeting the stock exchange, and sending it back you. [talking over each other] >> following this for the rest of the day. liz claman will take you through the last hour of trading. winkelvoss twins talking about
2:57pm
the new social network investment. count down to the closing bell is next. don't go anywhere. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally.
2:58pm
2:59pm